Crypto Markets Stabilize After Sharp Tech-Led Selloff; Derivatives and Tokens Show Defensive Positioning

Bitcoin inched higher early Friday, trading around $76,150 after rebounding from an overnight low near $75,200. Ether also edged up, and the CoinDesk 80 Index ticked higher as markets digested a broad risk-off move tied to weakness in technology stocks.

The pullback followed a steep Nasdaq selloff that spooked investors concerned Democratic control of Congress could slow AI-driven data center investment. That equity shock spilled into crypto, triggering more than $1 billion in liquidations across leveraged positions within 24 hours and driving notable declines in both bitcoin and ether.

Market flow and macro cues

The near-term focus is on the U.S. jobs report due at 8:30 a.m. EST (13:30 UTC), where economists expect payrolls to rise modestly. Traders are watching macro data closely for cues on risk appetite and whether recent volatility will persist.

Exchange-traded products echoed the strain: Fidelity’s FBTC and BlackRock’s IBIT recorded material drops in value, and IBIT extended an outflow streak measured in sessions.

Derivatives positioning

Open interest and liquidations: Bitcoin open interest rose slightly to about $22.1 billion from $21.8 billion, even as 24-hour liquidations reached roughly $1.27 billion — predominantly long positions. That net build in OI masks a rotation: leverage was flushed and then rebuilt rather than a sustained addition of new leverage.

Funding and term structure: Funding rates were volatile, briefly turning negative on some venues before settling in a 0–5% annualized band elsewhere. The three-month basis remains around 5.7%.

Options and skew: Options flow skewed defensive: the 24-hour put/call volume ratio favored puts (~51/48), and the one-week 25-delta skew steepened to about 15% from near 11% a week prior, indicating rising demand for downside protection. The ATM term structure remains in contango, with elevated front-end implied vols (~50%) easing into the belly/back around ~38–40% through late 2027.

Orderbook heatmap: With spot near ~$75,100, a notable cluster of long liquidity sits in the $74,000–$75,000 band — a key support zone if prices slide further. On the upside, the $76,800–$77,000 band serves as the main resistance pocket to monitor on a recovery.

Token developments and sector snapshot

• World Liberty Financial (WLFI): The token gained roughly 3.5% since midnight after the team announced additional buybacks funded partly by fees from reserves backing its USD1 stablecoin. Despite the bounce, WLFI remains well off recent highs and down materially since earlier in the week.

• Privacy coins: These held up relatively better through the selloff. Monero (XMR) declined around 3.2% over 24 hours versus bitcoin’s deeper drawdown, while Zcash (ZEC) rose after activating the NU7 upgrade, which shortens block target times and was well received.

• Hyperliquid (HYPE): The token has corrected from last week’s peak after an ICE–Trade[XYZ] deal initially boosted sentiment, leaving HYPE substantially lower from its recent high.

• Injective (INJ): INJ outperformed on the week after news that a Nasdaq listing for a staked-INJ product was approved in an SEC filing, sending the token higher by double digits.

• Altcoin season: CoinMarketCap’s altcoin season index sits at about 44/100, its weakest level since September, reflecting waning speculative enthusiasm.

Net takeaway: Markets have stabilised but remain sensitive to macro news and liquidity flows. Derivatives show a defensive tilt — with longs trimmed and downside protection sought — while token-level narratives vary from buyback-driven support to rotation into perceived safe-haven protocols.